Completing the Application, Underwriting, Delivering Policies, Contract Law
An applicant submits an application without premium. The policy is issued as applied for. Before delivery and premium collection, the applicant suffers a severe heart attack. What must the producer do at delivery?
Answer and explanation
Answer: C. Coverage cannot take effect if health changes prior to delivery and payment; the agent must withhold delivery.Source: IIPRC Application Standards — § 3.K. Good Health Statement
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